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A top-performing letter that presciently went bearish in November is Cabot Market Letter. See Jan. 10 column
Cabot is still bearish, but in calm and philosophical way. It said in its hotline Wednesday night: "What to do now: Keep your powder dry. Today's big reversal on huge volume could be the start of a bottom-building process. But with our major indicators still bearish, it's best to hold cash and play defense. In the Model Portfolio, we have no changes tonight"
Currently, the only stock Cabot shows as a "buy" and hence the only one it is credited with by the ruthless Hulbert Financial Digest monitoring system, which doesn't accept "holds" is Agnico-Eagle Mines Ltd. (AEM:Agnico-Eagle Mines Limited
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10:13am 01/24/2008
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Going into more detail, Cabot said: "... In the short-term, we continue to believe the market could bounce sharply today's action could be the start of such a process. Thus, if you have already built up a substantial cash position (the Model Portfolio's stands at 64%), you should try to give your few remaining holdings a chance to rally. (That's assuming no loss limits have been tripped.) Sure, that bounce may not materialize, but the odds favor it, especially after this week's panic selling and this afternoon's rebound. If we do get a bounce, we can re-evaluate our holdings at that point."
Here's the philosophy: Cabot went on: "Besides that, you should be letting this fever work its way through the system. Yes, it's ugly out there, but this down period WILL come to an end, and when it does, the next bull move will provide many profitable opportunities, as it always has."
Nice to know.
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